CNOOC bucks trends; to hike output, expenditure

21 January 2009

Chinese oil major China National Offshore Oil Corporation Ltd (CNOOC) says it expects its crude oil and natural gas production to rise 16-18 per cent this year, driven by output from new projects in Nigeria and Indonesia, unlike the OPEC, which has announced productin cuts to shore up declining prices, after peaking at $147 per barrel in July last year (See: Oil reels under triple blow, rises to record $146.90 a barrel) 

It has also announced that it would boost capital expenditure for this year by 19 per cent $6.76 billion, despite lower oil prices. of this, $4.38 billion is budgeted for development, $1.11 billion for exploration, and $1.12 billion dollars for production.

The company estimates its net production is estimated at 225-231million barrels of oil equivalent this year, up from 194 million to 196 million in 2008, the company said in a statement.

CNOOC's plans for 2009 are in sharp contrast to what many of its countrparts around the world are doing, which is to slash production in the face of the price slide and waning demand amid a global financial crisis.

"We are confident in a continuing production and reserves growth in 2009. Next year, our exploration and development activities will be further strengthened to facilitate our sustainable development in the future," Fu Chengyu, chairman and chief executive officer of the Hong Kong-listed company, said in a statement.

Although oil prices declined in the second half of 2008, CNOOC Ltd has kept its business at stable pace.